Trust Updates Archive
(July 14, 2011 --Chicago, IL) --The U.S. Department of Labor yesterday announced it was extending the applicability dates for two of its retirement plan fee disclosure rules to April 1, 2012. This follows the agency’s June notice, which extended the dates to January 2012.
The DOL published an interim final regulation under ERISA Section 408(b)(2) on July 16, 2010 that requires retirement plan service providers to disclose fee information and potential conflicts of interest to plan fiduciaries. This regulation was to become effective for plan contracts or arrangements for services in existence on or after July 16, 2011. The final rule issued yesterday moves the effective date to April 1, 2012.
A participant-level rule issued on Oct. 20, 2010, requiring employers to disclose information about plan and investment costs to workers who direct their own investments, applies to plan years beginning on or after Nov. 1, 2011. This rule contained provisions for a 60-day transition period that extended compliance to January 1, 2012. The DOL’s new final rule, issued yesterday, retains a modified version of the 60-day provision, which according to regulators, works in conjunction with the new April 1, 2012 date.
Regulators says this linking of the two rules will ensure that the 408(b)(2) regulation becomes effective first and that all plans will be able to take advantage of the transition period, following the effective date of the 408(b)(2) regulation.
Industry association groups have been asking the DOL to give employers and service providers more time to implement the disclosure rules.
For more on this topic, see the upcoming issue of Trust Regulatory News.
No statement in this issue is offered as or should be construed as legal opinion or advice or as an indicator of future performance.
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